The Tongaat-Hulett Group Limited - Annual General Meeting Trading Update
THE TONGAAT-HULETT GROUP LIMITED
Registration No. 1892/000610/06
JSE code TNT
ISIN ZAE000007449
Annual General Meeting Trading Update
At the annual general meeting of the company held today the following statement
was made:
" In recent years, the Group"s investments in major manufacturing projects in
Southern Africa have generated the planned growth in sales, boosted by exports,
and while many new opportunities in marketing and sales have been created, the
Group"s results are now more sensitive to exchange rate fluctuations. The
movement in the Rand is not helping us at the moment; it continued to strengthen
in the first quarter of 2003 and in that period, the domestic maize price almost
halved. The financial effects of the application of AC 133 on maize
procurement contracts are currently being assessed. Furthermore, a lower sugar
crop is expected this year following poor rainfall in the cane growing areas.
Earnings for the first six months of 2003 are therefore likely to show a major
reduction, with some improvement expected during the second half.
Against the background of an uncertain world economy and exchange rate
volatility, our underlying operations remain sound, with continued growth in
sales revenues. Management is focused on reducing overheads, minimizing
expenditure and maximizing cash flows.
The Group"s balance sheet is strong and despite the anticipated setback in
earnings, the Group will endeavour to maintain its interim dividend for the half
year."
Sponsor
HSBC
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